topic Re: CLI effects on application in Credit Cards

CLI effects on application

jim44 — Mon, 05 May 2014 21:11:31 GMT

Was wondering if anyone has had the experience of requesting a CLI and then applying for a MC about a month later? How bad will my FICO take a hit? If approved. ..which I'm almost certain will increase my utilization ratio.... I'm thinking the CLI is for a store card and will result in a HP. I've already had an HP from CITI about a month ago. Thanks for all replies.

Re: CLI effects on application

myjourney — Mon, 05 May 2014 22:52:21 GMT

@jim44 wrote:
Was wondering if anyone has had the experience of requesting a CLI and then applying for a MC about a month later? How bad will my FICO take a hit? If approved. ..which I'm almost certain will increase my utilization ratio.... I'm thinking the CLI is for a store card and will result in a HP. I've already had an HP from CITI about a month ago. Thanks for all replies.

Welcome to the forum

Please explain

Same card same lender?

New lender?

Re: CLI effects on application

dave024 — Tue, 06 May 2014 00:32:39 GMT

Not sure if this answers your question directly, but when I applied for Barclays last year one of the things listed in my denial letter was that I had recently had a couple of credit limits increased on other cards.

Re: CLI effects on application

jim44 — Tue, 06 May 2014 01:50:27 GMT

Thanks Dave, for the reply of your experience.

My Journey, the CLI would be through GEMB on a Lowe's store card opened in Oct 2013. Actually i'd be applying for a Visa through my CU. I'm kind of thinking like Dave that I may be denied the VISA if GEMB grants the CLI. Thanks for your replies

Re: CLI effects on application

myjourney — Tue, 06 May 2014 02:12:15 GMT

@jim44 wrote:
Thanks Dave, for the reply of your experience.

My Journey, the CLI would be through GEMB on a Lowe's store card opened in Oct 2013. Actually i'd be applying for a Visa through my CU. I'm kind of thinking like Dave that I may be denied the VISA if GEMB grants the CLI. Thanks for your replies

Since Lowes is a SP and can grow fast I would go for the CLI regardless and if you think you want the CU card apply....

You don't see many denials because you received a CLI in fact it may increase the odds of getting higher limits in some cases

IMHO

Re: CLI effects on application

dave024 — Tue, 06 May 2014 02:19:40 GMT

I just wanted to add that the increasing credit lines was probably a minor factor, but it influenced them in some way for them to mention it. When I attempted a recon they gave me other reasons, such as not having enough data to show I am repaying back what I owe.

Re: CLI effects on application

parakleet — Tue, 06 May 2014 04:13:59 GMT

@myjourney wrote:
@jim44 wrote:
Thanks Dave, for the reply of your experience.

My Journey, the CLI would be through GEMB on a Lowe's store card opened in Oct 2013. Actually i'd be applying for a Visa through my CU. I'm kind of thinking like Dave that I may be denied the VISA if GEMB grants the CLI. Thanks for your replies
Since Lowes is a SP and can grow fast I would go for the CLI regardless and if you think you want the CU card apply....
You don't see many denials because you received a CLI in fact it may increase the odds of getting higher limits in some cases
IMHO

+1 any potentially negative effects attributable to CLIs are likely connected to maybe income/credit limit ratio (ex. Too much credit in relation to income) or if those CLIs required multiple HPs. Typically SP CLIs are considered positives and even if you took a HP for one, Id find it hard to believe that could affect you negatively.

Re: CLI effects on application

Creditaddict — Tue, 06 May 2014 04:21:32 GMT

@jim44 wrote:
Thanks Dave, for the reply of your experience.

My Journey, the CLI would be through GEMB on a Lowe's store card opened in Oct 2013. Actually i'd be applying for a Visa through my CU. I'm kind of thinking like Dave that I may be denied the VISA if GEMB grants the CLI. Thanks for your replies

1. Almost all GE cards including lowes are SP's.

2. It's lowes and know for giving HUGE cli's and you should call the "credit solutions" number 866-519-6441 and ask for $25k, they will counter! Seriously!!

3. What credit union?

Re: CLI effects on application

jim44 — Tue, 06 May 2014 14:47:18 GMT

Thanks for all the informative replies. I've been helping out in F&I at work and have learned much more from this forum.

I'm working on my home and love the store cards for the no interest promotions. That is why the CLI request with Lowes. It's good to know that GEMB does SPs with CLI's as I'm trying to boost my FICO. As far as the CU and the VISA goes, it's local... Achieva. I joined the CU back in 87, however it merged with Achieva around 2009. So it's like starting over with them as all my previous car loans, HELOCs and CC's positive TLs with the CUs have dropped off my CR.

Re: CLI effects on application

Creditaddict — Tue, 06 May 2014 14:50:13 GMT

@jim44 wrote:
Thanks for all the informative replies. I've been helping out in F&I at work and have learned much more from this forum.
I'm working on my home and love the store cards for the no interest promotions. That is why the CLI request with Lowes. It's good to know that GEMB does SPs with CLI's as I'm trying to boost my FICO. As far as the CU and the VISA goes, it's local... Achieva. I joined the CU back in 87, however it merged with Achieva around 2009. So it's like starting over with them as all my previous car loans, HELOCs and CC's positive TLs with the CUs have dropped off my CR.

Do you know your current scores?

What is your current Lowes Credit Line?

Re: CLI effects on application

takeshi74 — Tue, 06 May 2014 15:12:50 GMT

@jim44 wrote:
Was wondering if anyone has had the experience of requesting a CLI and then applying for a MC about a month later? How bad will my FICO take a hit? If approved. ..which I'm almost certain will increase my utilization ratio....

Impossible to tell you. Hit would be mainly the inquiry but impact varies depending on credit.

A higher CL doesn't increase utilization. It lowers it. Utilization is balance(s) / limit(s). If you make the number at the bottom of a fraction larger then it makes the number smaller (e.g. 1/4 is smaller than 1/2). Increasing balance(s) or decreasing limit(s) would increase utilization.

Where it might be an issue is if a potential creditor isn't comfortable with your current CL's given your credit and income -- or the fact that you've had recent CL's. This is another situation where results can differ based on credit and income. Person A could get an approval after a CL while Person B could be denied. There's no simple and direct relationship at play despite what your question seems to assume.

Re: CLI effects on application

jim44 — Tue, 06 May 2014 16:28:19 GMT

Thanks Takeshi, as you see I'm still learning.....

Creditaddict, My FICO with TU is 685 (or Fako). The debt to income ratio is no problem. No degrogs on TU.

I went to my Lowes Acct and noticed the deal with Synchrony Bank. Asked for the CLI and received a message that requests can't be completed online at this time. I did the live Chat, which the CR told me she would be glad to see about the message... she couldn't tell me whether Lowes does a SP or HP. That was a warning to me so I declined the offer for her to complete the CLI request.

I see other threads on my FICO warning about the SB "name change" and to do a CLI request right away. To me I think it's too late.

Re: CLI effects on application

Creditaddict — Tue, 06 May 2014 16:30:43 GMT

@jim44 wrote:
Thanks Takeshi, as you see I'm still learning.....

Creditaddict, My FICO with TU is 685 (or Fako). The debt to income ratio is no problem. No degrogs on TU.
I went to my Lowes Acct and noticed the deal with Synchrony Bank. Asked for the CLI and received a message that requests can't be completed online at this time. I did the live Chat, which the CR told me she would be glad to see about the message... she couldn't tell me whether Lowes does a SP or HP. That was a warning to me so I declined the offer for her to complete the CLI request.
I see other threads on my FICO warning about the SB "name change" and to do a CLI request right away. To me I think it's too late.

Call 866-519-6441 and do the CLI with them and ask for $25k (tell them you are looking at putting in a new kitchen) THEY WILL COUNTER SO DON'T CHICKEN OUT AND ASK FOR $2k!

Re: CLI effects on application

PrimeRate — Tue, 06 May 2014 16:37:17 GMT

My advice: Listen to CreditAddict.

Re: CLI effects on application

jim44 — Tue, 06 May 2014 17:09:26 GMT

Thanks Creditaddict. Will do and thanks again for the advice!

Re: CLI effects on application

jim44 — Wed, 07 May 2014 20:52:35 GMT

Thanks for the advice Creditaddict! Your suggestion worked and I was granted the CLI for Lowes as requested. I'm glad to be a member of this community!

Re: CLI effects on application

Creditaddict — Wed, 07 May 2014 20:54:12 GMT

Great!